(Bloomberg) — Arm Holdings Plc is extending a blistering rally in the wake of last week’s blockbuster earnings report that showed artificial intelligence spending is bolstering sales.
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The chip designer’s shares soared as much as 42% on Monday on volume that was more than four times the average over the past three months. The advance extended the stock’s gains to 99% in the three trading sessions since Arm’s results were released after markets closed on Feb. 7.
“What you’re seeing here is a feeding frenzy for anything to do with AI,” said Dennis Dick, trader at Triple D Trading. “We’ve already seen this kind of thing with Nvidia, but now Arm is being put in the same classification. It isn’t a pure AI play, it does other things, but it does have that division, and that’s what driving the price here. It’s just about the AI boom.”
Last week, Arm projected revenue of $850 million to $900 million for the March quarter, far surpassing the average analyst estimate at $778 million. Chief Executive Officer Rene Haas said opportunities presented by AI are still in the early stages.
—With assistance from Ian King and Ryan Vlastelica.
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